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Please be advised that contacting Ruder Ware by e-mail does not create an attorney-client relationship. If you contact the firm by e-mail with respect to a matter where the firm does not already represent you, any information which you disclose to us may not be regarded as privileged or confidential.

WERC Sets CPI Limit for New Labor Agreements

The content in the following publication is based upon the state of the law at the time of its original publication. As legal developments change quickly, the content in these publications may not remain accurate as laws change over time. None of the information contained in these publications is intended as legal advice or opinion relative to specific matters, facts, situations, or issues. You should not act upon the information in these publications without discussing your specific situation with legal counsel.

The WERC has calculated the CPI limit for new Labor Agreements being negotiated with public sector unions. The CPI limit on base wage negotiations for Labor Agreements that expire on June 30, 2013, is 2.07%. The CPI limit for base wage negotiations for Labor Agreements that expire on December 31, 2013, is 1.66%.

These limits, of course, are subject to challenge in the case pending before the Wisconsin Supreme Court. We anticipate that oral arguments will be held in this case in late October or early November, and a final decision will be issued in February, 2014. The Supreme Court could uphold Wisconsin Act 10 as constitutional, declare the law unconstitutional or find that certain provisions of Wisconsin Act 10 are not constitutional and may not be implemented by municipal employers.

During this interim time, public employers should continue to focus only on negotiating over the base wage increase from the prior year and apply the CPI limitation that has been determined consistent with the law. This is the most conservative approach in this time of great uncertainty.